It is estimated that less education equals higher ______.

• A. wages
• B. unemployment
• C. labor productivity
• D. job security

Answer: (B)

Verified step by step guidance

1. Understand the relationship between education and economic outcomes. In microeconomics, education is often linked to human capital, which affects a worker's productivity and employability.
2. Recall that higher education typically increases skills and knowledge, making workers more attractive to employers and reducing the likelihood of unemployment.
3. Recognize that less education generally means fewer skills and lower human capital, which can lead to a higher risk of unemployment because these workers may find it harder to secure jobs.
4. Consider the options given: wages, unemployment, labor productivity, and job security. While wages and productivity are related to education, the direct and most common economic consequence of less education is higher unemployment.
5. Conclude that the correct term to fill in the blank is 'unemployment' because less education is associated with a higher probability of being unemployed.